The majority of foreclosures in Texas are handled by a trustee often under the deed of trust, without the intervention of a court. However, many types of liens need the employment of a specific process that involves the Texas court system. Creditors must first acquire lien rights under the law or get a court judgment before they may impose a lien on your estate. Among the several types of foreclosures that might be imposed on your premises include:
1. Property Tax Liens
When you neglect to pay property taxes for your house or land, the local tax collectors may place a lien on it. This implies that liens on property in Texas make the government have a legal claim to the overdue taxpayer’s property until the tax bill, plus penalties and interest, is fully paid.
2. Mortgage
A mortgage lien is a charge on the property that exists if you do not repay your mortgage completely. When you have settled all of your interest and mortgage, the lien is erased and you own your property.
3. Reverse Mortgages
Reverse mortgages are lines of credit or loans provided by lenders based on the equity in your property. These lenders seek the first place for lien dominance
4. Home Equity Loans
Second mortgages are widely used to refer to home equity lines of credit (HELOCs) and home equity loans. The word “second” refers to the fact that if you are unable to make your mortgage payments and your property is sold to clear your obligations, this loan is repaid second, causing it to be a “junior lien.”
5. Child Support Liens
It is possible to acquire a lien for failure to pay child support as per Texas law. Texas also aggressively pursues child support liens generated in other jurisdictions.
6. Owelty of Partition
This usually happens during a divorce when couples, as co-owners, utilize the equity in their house to help divide their property. The owelty lien – money due to the spouses being bought out – must be documented if one spouse “buys out” the other’s stake in the property.
7. Federal Tax
A federal tax lien in the United States serves as a government’s legal claim upon your properties when you fail to pay a tax liability.
8. HOA Liens
Homeowners’ Associations (HOAs) can levy a lien on a property if the owner fails to pay the monthly assessments or fees.
9. Mechanics Liens
Construction liens are filed by suppliers, subcontractors, or contractors, who have not been paid for work completed or supplies provided on the site.
10. Medicaid Liens
This type of lien is imposed on real estate in order to recoup Medicaid payments incurred over a person’s lifetime. The state of Texas may recover its Medicaid reimbursement when their real estate sale is completed, whether pre or post demise, although certain conditions apply.
11. Judgment Liens
This is a court judgment that allows a creditor to seize a debtor’s real estate if indeed the debtor fails to meet their contractual commitments.
12. Weed Cutting Liens
Most local municipalities in Texas and throughout the country have rules in place that may result in high fines or, worse still, a lien for property owners who struggle to maintain the lawn.
Endnote
If you are facing foreclosure and have doubts about whether a non-mortgage lien or other forms of claim on your house will be discharged by the foreclosure — or if you do have concerns about how the foreclosure process works — consult with a local foreclosure attorney.